* Achieves $0.42 EPS and revises 2008 EPS guidance
 * Record quarter for Logistics with net sales of $86.5 million
 * TomTom becomes Company's second largest customer
 * Repurchased $15 million of stock in the quarter

DOWNERS GROVE, Ill., July 29, 2008 (PRIME NEWSWIRE) -- ATC Technology Corporation (ATC) (Nasdaq:ATAC), today reported financial results for the quarter ended June 30, 2008.

Second Quarter Results

For the second quarter of 2008, net sales increased 4.0% to $135.6 million from $130.4 million in the second quarter of 2007. Income from continuing operations for the second quarter of 2008 decreased 22.4% to $9.0 million from $11.6 million in the second quarter of 2007. The resulting income from continuing operations per diluted share was $0.42 for the second quarter of 2008 compared to $0.53 for the second quarter of 2007.

The Company's Logistics segment delivered its strongest quarterly revenue with net sales of $86.5 million, up 25.0% from $69.2 million for the second quarter of 2007. Logistics segment profit for the quarter increased 9.6% to $11.4 million from $10.4 million in the same quarter of last year. The increases in revenue and profit were driven largely by the efficient launch and ramp-up of new business programs, including TomTom, and increased volumes with AT&T and other base business customers. Second quarter 2008 results were partially offset by revenue reductions related to the automotive electronics upgrade program substantially completed during the first quarter 2008 and the Nokia test and repair program, which was terminated in mid-2007.

The Drivetrain segment's net sales of $49.1 million decreased 19.8% from $61.2 million for the second quarter of 2007. Second quarter 2008 segment profit was $3.1 million compared to $7.7 million for the second quarter of 2007. The decrease in revenue was driven primarily by lower volumes of Honda remanufactured transmissions for warranty applications compared to higher volumes in the second quarter of 2007 believed to be attributable to an extension of warranty coverage on certain models. Additionally, the Company experienced continued softness in demand for Ford and Chrysler transmissions due to normal life-cycle decay of legacy transmission platforms and general market softness. Segment profit was correspondingly impacted by the reduced volumes.

Management Comments

Don Johnson, Chairman and CEO said, "Overall, the Company's performance was led by our Logistics business, which achieved its seventeenth consecutive quarter-over-quarter increase in revenue with net sales up 25.0% to a new quarterly revenue record of $86.5 million."

"I am particularly pleased to report that Logistics' performance during the quarter was driven in large measure by the continued efficient launch and ramp-up of new business programs, most specifically, TomTom. During the quarter, TomTom became the Company's second largest customer, achieving this status sooner than originally expected due to TomTom's success in the North American market. Performance in the quarter was also driven by strong volumes in our AT&T and other base business, and continued operational efficiency improvements delivering further cost reduction. Segment margin of 13.2% was solid due to base business strength, the TomTom ramp-up and operational efficiency improvements. It is rewarding to see that our process improvements coupled with excellent cooperation from our customers have resulted in efficient new business launches and improved productivity."

"I am pleased to advise that during the second quarter, we renewed our contract with T-Mobile for forward services. We intend to continue growing with our customer to meet their market needs."

"The demand for high quality, full-suite logistics service providers serving a variety of end markets is increasing as companies look to outsource their logistics operations in a competitive market environment. We believe we are well positioned to participate in the range of market verticals that we are pursuing as we strategically drive to improve our customer and revenue diversification by capturing greater logistics market share."

"Our Drivetrain segment was challenged this quarter by the anticipated reduction in Honda business, as well as by continued softness with Ford and Chrysler, partially offset by solid growth in our Allison business.